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NIEO Full Form

NIEO Full Form

Edited By Team Careers360 | Updated on Jan 04, 2023 04:29 PM IST

What is the Full Form of NIEO?

The New International Economic Order (NIEO) comprised a reevaluation of the rules and procedures already in place and the connections and structures that dominated the world political economy in the 1970s. It has taken a significant step toward bringing classical liberalism into every aspect of the global economy. It was first established in 1972 when the Non-Aligned Movement's developing nations protested the rise in world inequity. The United Nations Conference on Trade and Development in Santiago was where it entered. It pushed for the advancement of developing countries' interests through improved trade, increased development assistance, decreased tariffs, and other political accords.

NIEO Full Form
NIEO Full Form

One of these proposals was modifying the global economic order in favour of developing nations. The main point is the replacement of the Bretton Woods system, which favoured the leading states. The suggestions state that it would speed up economic growth and development. Additionally, it would make market share among developing countries easier. These nations will better combat global problems like hunger and poverty.

Funding Principles Of NIEO

The NIEO was adopted to advance the economic and social well-being of all people in mind, in accordance with the ideals of the United Nations Charter. The NIEO's guiding principles at its inception were:

  • All countries have equal sovereign rights. These countries' citizens have the right to self-determination, and no government can meddle in another country's internal affairs.

  • All of the members ought to work together in harmony.

  • To hasten the growth and development of all emerging nations, all nations will take a full and equal part in the formation of the NIEO and in resolving global economic issues.

  • Special measures will be taken to help developing nations negatively impacted by economic crises and natural disasters.

  • Every nation has the freedom to enact the economic and social systems that it sees fit.

  • Every state has the sole authority over its economic endeavours and natural resources.

  • A nation has the right to get full compensation for the exploitation and harm colonialism did to its natural resources.

  • Developing nations ruled by colonial powers will receive assistance to manage their natural resources and economic activity.

Frequently Asked Question (FAQs)

1. When was the New World Order established?

On May 1st, 1974, the United Nations (UN) General Assembly passed the Declaration for establishing a New International Economic Order.

2. Why was NIEO created?

Developing nations have proposed the New International Economic Order (NIEO) to end economic colonialism and dependency by creating a new interdependent economy.

3. Describe the Non-Aligned Movement.

Through the Cold War, the Non-Aligned Movement was born. It is an alliance of nations that eschewed supporting either the United States (US) or the Union of Soviet Socialist Republics (USSR). Throughout the War, these nations upheld their independence and acted impartially.

4. What was the NIEO's main goal?

Its main goal was to change how the global economy was governed so that greater advantages of transnational integration would benefit "the developing nations," completing the geopolitical process of decolonization and establishing a democratic world order of fully independent states.

5. Why was NIEO a failure?

Under pressure from the developed nations, UNCTAD's (United Nations Conference on Trade and Development) bias, and never-ending "negotiations" and "conversation," the "stabilisation" fund policy took the place of producer groups' plans for collective unilateral intervention when it was necessary. In the end, the conflict over the NIEO was unsuccessful.

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